History of Istiqlal Mosque: From Soekarno-Hatta's Symbol of Independence to Sharia Investment Ecosystem
Istiqlal Mosque now has a new connection with Indonesia’s financial sector. The national mosque located in Central Jakarta has begun to be linked with the Indonesia Stock Exchange (IDX) ecosystem through the management of productive waqf.
Islamic philanthropic funds channelled to Istiqlal Mosque are directed to be professionally managed through investment managers and sharia-compliant capital market instruments.
This development is part of efforts to expand the utilisation of waqf in Indonesia. Waqf, which was previously associated with immovable assets such as land and buildings, can now be developed into productive instruments, including through the sharia capital market.
In the scheme developed for Istiqlal Mosque, waqf can be placed in instruments such as mutual funds with underlying shares that comply with sharia principles. However, Istiqlal Mosque’s involvement in the capital market ecosystem does not mean that the mosque has become a company listed on the IDX.
The connection lies in the management of waqf funds through investment instruments. Before entering the realm of philanthropy and the capital market, Istiqlal itself has a long history as a symbol of independence as well as Indonesia’s national mosque. The following is further information, as compiled by Viva on Tuesday, 11 August 2026.
The idea to build Istiqlal Mosque was first proposed by Vice President Mohammad Hatta in 1951. At that time, Hatta wanted Indonesia to have a national mosque in the capital that could serve as a symbol of independence while showcasing the propagation of Islam to people from various countries.
Hatta then invited a number of figures, including Sjafruddin Prawiranegara and Hamka, to discuss the construction of the national mosque. A construction committee was subsequently formed with Assaat as general chairman.
However, the process took place amid Indonesia’s political dynamics. Changes in the political situation forced a number of figures on the committee to leave Jakarta. Hatta also resigned from the vice presidency in 1956.
The idea was then continued by President Soekarno. The composition of the construction committee was reshuffled and the planning process for the national mosque was resumed.
Location became an important part of the history of Istiqlal Mosque’s construction. Hatta had previously proposed the Jalan Thamrin area, on land that is now the site of Hotel Indonesia.